Due to Pigou’s “defective telescopic faculty,” a market economy is inefficient in allocating resources between the present and the future.

Which of these events could permanently shift a individual's demand curve for umbrellas to the right?

a) He buys a car so her no longer needs to walk to and wait at a bus stop every morning to get to work b) He moves from a desert community to a rainy city by the ocean c) The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China d) Weather forecasters predict that a major hurricane will hit his city in the following week

If the seller of a used car offers a limited warranty, the warranty is an example of a(n)

a. signal. b. screen. c. efficiency wage. d. agent.